Gamified risk-taking

Philipp Chapkovski, Mariana Khapko and Marius Zoican

Journal of Behavioral and Experimental Finance, 2025, vol. 46, issue C

Abstract: We conduct a randomized online experiment to examine how digital nudges to hold volatile assets, a form of trading gamification, influence retail investors’ risk-taking behavior. A sample of 605 participants from four countries traded a virtual asset on an experimental platform. The gamified platform incorporates digital nudges, such as achievement badges and motivational prompts, explicitly designed to encourage holding decisions. We find that nudges significantly amplify risk-taking, particularly in high-volatility environments. The effect is most pronounced among inexperienced traders with lower financial literacy, with a one standard deviation increase in financial literacy reducing the impact by 56%.

Keywords: Gamification; Risk; Experimental finance; Financial literacy; Retail trading (search for similar items in EconPapers)
JEL-codes: C91 G11 G41 G53 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:46:y:2025:i:c:s2214635025000309

DOI: 10.1016/j.jbef.2025.101049

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